Does anyone invest in apartment buildings? I'm a new investor and I've been researching how to buy apartment buildings because i'm not really interested in houses.

I found this site

Real Estate Investing | Passive Income | Residual Income

I copied the title from the site.

He talks about buying apartment buildings but i wanted to see if anyone has a review.

I'm researching now but just want to know if anyone can add to my research.

Donna

Hi Donna,

I am able to do large apartment buildings for 85% to 90% LTV at 1.10 DSCR, refinance and/or acquisition. If you are (or know of) a professional builder of multi-family apartment buildings, I can get 90% LTV. Minimum value $5M. I can help you and we close fast.

http://www.directfunders.com/largemultifamily

If you have additional questions, please visit the website and go to the contact page or you can reply here in this forum.

I've bought and sold a few...It can be tricky because the seller can be creative with the numbers and make the property look stronger than it is. I subscribe to several market study newsletters, let me know what area you are intersted in and I'll send you some info.

Key tip:Make sure you have a stip in the pruchase contract that says the seller is basing there cap and price on actual numbers and not proformer numbers.Actual numbers is what it's doing now,proformer is what it might generate in the future.You only want to pay for what it is doing now.

Loopnet is espcially bad about advertising proforma and not actual income and expenses

I think you mean Loopnet's MEMBERS (they're just agents like us BTW). I do understand, they show awesome proforma numbers, and when you call they're generally like "with a little work and management i see this being an incredible opportunity...What? Oh, you want to know what the building is doing on actual, well, it's about 30% of the posted proforma to date...." LOL
SO BE careful, ask the right questions and make an educated decision. I see most of the agents on loopnet post a 22% cap rate, and even on proforma number it only works out to be like 11% cap. I HATE that. Best of luck guys!